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Golden Gate Capital to Acquire Geac

Originally published November 7, 2005

Golden Gate Capital, a private equity firm focused on investing in high-growth businesses in change intensive industries, and Geac Computer Corp. Limited recently announced that they have reached a definitive agreement for Golden Gate Capital to acquire Geac in an all-cash transaction valued at 11.10 per share, or approximately $1.0 billion, pursuant to a plan of arrangement.

The agreement has received unanimous approval from Geac's Independent Committee and Board of Directors. The Independent Committee was advised by Bear, Stearns & Co. The Independent Committee also received a fairness opinion from CIBC World Markets. The parties anticipate closing the transaction in the first calendar quarter of 2006. The closing is subject to certain customary closing conditions, including receipt of required regulatory approvals and Geac shareholder and court approval of the plan of arrangement.

"The technology businesses we acquire are carefully selected based on their growth potential and ability to deliver vertically specific enterprise software offerings and deep market expertise to their customers. Golden Gate Capital views Geac as a natural addition to this successful strategy," said David Dominik, Managing Director of Golden Gate Capital, which has more than $2.5 billion under management.

"Golden Gate Capital looks at acquisitions with a different perspective than most private equity firms. We seek to integrate companies that can grow significantly faster together than they could on their own. This strategy has been implemented successfully by Concerto/Aspect Software, AttachmateWRQ, Inovis and Infor. We will aggressively support the Geac business units with our 'assembler' acquisition strategy.  Upon completion of the acquisition, Geac will be reorganized into two separate Golden Gate Capital portfolio companies."

As part of the reorganization, Infor, an existing Golden Gate Capital funded company, will acquire Geac's ERP software products—including  System21, Runtime, RatioPlan, Streamline, and Management Data—and the employees who support them will move to Infor.  As the largest provider of enterprise software exclusively focused on the manufacturing and distribution industries, Infor delivers integrated solutions that address the essential challenges its customers face in areas such as supply chain planning, relationship management, demand management, ERP, warehouse management, marketing-driven distribution, and business intelligence. Infor has more than 2,300 employees in 47 offices around the world and supports approximately 18,000 customers in more than 70 countries.

Geac's financial applications and the Industry Specific Applications (ISA) will become the two business groups under a newly formed Golden Gate Capital funded company, which will be named prior to the transaction closing and is referred to below as "NEWCO".  In addition, Geac's general and administrative staff, including the finance and accounting, legal, IT and human resources teams will provide the global general and administrative infrastructure for NEWCO. The newly formed Financial Applications business unit under NEWCO will include the products and the employees who currently work within Geac's Enterprise Server, SmartStream, Anael, Extensity and Comshare products.  This business unit will target the integrated financial applications software market, and the combination of these solutions will become the foundation of a complete offering of integrated financial applications.

This BeyeNETWORK news item contains information from a recent press release by the company mentioned.